Ahead of its Q4 results to be released on April 20, 2024 (Saturday), HDFC Bank shares traded in the red even as global brokerage Jefferies iterated its buy stance on the private lender for a target of Rs 1800. This is a significant potential upside of 18 per cent from the previous close.

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At around 10:02, shares of the private lender added 0.19 per cent or Rs 2.8 at Rs 1497.25 per share.

The brokerage mentioned that the framework on the lender’s potential credit growth for next five years builds sensitivity. Similarly, credit card growth builds sensitivity to deposit market share gains. 

Additionally, the brokerage mentions that if the lender grows deposits at 17-18 per cent over March 24-29 then loan growth can be 13 per cent. Additionally, improvement in net interest margins (NIMs) is key to rise in RoA and valuation re-rating.

For the upcoming Q4, the company sees the largest private lender by market value to showcase a strong overall financial performance with stable margins and slightly improved asset quality.